The regulation about real estate properties by the government in China has amazing consequences. In order to prevent any risk of real estate bubble and because of the fear that the prices in real estate would grow too fast and lead to a social crisis, many measures have been implemented to cool down the market, with success.
However, Chinese people desire of real estate has no limits or bounds, and the new phenomenon is : Chinese people are buying abroad, and this is beginning to be massive (the trouble with China and its numbers is that any phenomenon become massive).
Chinese people have two favorite investments: education and real estate.
To have an idea, it is expected that Chinese people will spend 1.200 billion dollars in 2013 on the Chinese domestic market alone.
The subsequent price rise in China has led to a now situation : foreign properties are often mre affordable than an apartment on the Chinese market. According to a survey, half of the Chinese millionnaires are considering buying property abrad in the incoming years. This is because they often want to emigrate, or try a carrer in another country with China’s economic future sometimes seen as uncertain. Here again, the USA and Canada are the favorite destinations, because of the confidence in the country and the education system seen as very attractive.
Most of the wealthy Chinese citizens choose to buy properties in the USA, but the Chinese people are expected to spend around 50 billion dollars in properties abroad, and waves of Chinese buyers have been seen in many countries such as Australia (840% increase of Chinese buyers within 3 years), New Zealand, France Great Britain, Cyprus, as new categories of rich people are entering the market.
A website alone sums up the success of this trend ;: Juwai, a website dedicated to real estate abroad for Chinese buyers. This portal depicts the areas, the cities, gives some pieces of advice and Chinese people are deligted to harvest this new market for them. Local realtors have agreements with the website and some of them are doing great.
The recent national holiday, the « Golden Week » has seen an unprecedented number of Chinese people going abroad to chase properties. Tours are organized in some areas with Chinese buyers lining up to buy an apartment.
Even real estate developers are now investing outside the Chinese domestic market, investing in new places and developing brands such as Vanke outise of China, with a strong image to Chinese buyers.
The Chinese desire for real esate all over the world is only at its beginning.
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